Expenditure Item Validation

When you enter expenditure items, you are charging cost to a project and a task. Oracle Projects validates expenditure items against predefined criteria and any transaction controls and transaction control client extensions that you set up during the implementation.

Note:

* Distribute Usage and Miscellaneous Costs

The process computes the costs and determines the default GL account to which to post the cost for expenditure items with the following expenditure type classes:

Usages

Burden Transactions

Miscellaneous Transactions

Inventory and WIP transactions not already costed or accounted

B: Provider and Receiver Controls Setup

For each provider operating unit or receiver operating unit involved in the cross charge, the Provider/Receiver Controls window Provider Controls and Receiver Controls tabs specify:

The cross charge method to use to process intercompany cross charges and to override default cross charge method for inter-operating unit cross charges.

Attributes required for the provider operating unit to process intercompany billing to each receiver operating unit. This includes the Intercompany Billing Project and Invoice Group.

Attributes required for the receiver operating unit to process intercompany billing from each provider operating unit. This includes the supplier site, expenditure type and expenditure organization.

* (C) Intercompany Billing Accounting

Companies choose the intercompany billing method largely due to legal and statutory requirements. When you use this method, Oracle Projects generates physical invoices and corresponding accounting entries at legal transfer prices between the internal seller (provider) and buyer (receiver) organizations when they cross a legal entity boundary or operating units.

* (D) Overview of Cross Charge

When projects share resources within an enterprise, it is common to see those resources shared across organization and country boundaries. Further, project managers may also divide the work into multiple projects for easier execution and management. The legal, statutory, or managerial accounting requirements of such projects often present complex operational control, billing, and accounting challenges.

Oracle Projects enables companies to meet these challenges by providing timely information for effective project management. Project managers can easily view the current total costs of the project, while customers receive bills as costs are incurred, regardless of who performs the work or where it is performed.

C: View Accounting Details

With the integration to Oracle Subledger Accounting, you now have the option to define account derivation rules within Oracle Subledger Accounting that will replace the default accounts generated by the Oracle Projects AutoAccounting feature.

E: Account Generation Rules

During the upgrade, Oracle Grants Accounting creates default accounting definitions that allow the system to continue using existing AutoAccounting rules without additional setup steps. You may choose to create your own accounting definitions using Accounting Method

Note:

Revenue and Billing Information

When you enter revenue information for your project, you specify a revenue distribution rule for the revenue accrual method and the billing method for this project. When you enter billing information, you specify invoice formats, bill cycle days, and other invoicing information.

The project type determines which revenue distribution rule appears as the default value for this field, and which other revenue distribution rules you can choose from. Oracle Projects predefines the following revenue distribution rules:

Cost/Cost Accrue revenue and bill using the ratio of actual cost to budgeted cost (percent spent).

Cost/Event Accrue revenue using the ratio of actual cost to budgeted cost (percent spent), and bill based on events.

Cost/Work Accrue revenue using the ratio of actual cost to budgeted cost (percent spent), and bill as work occurs.

Event/Event Accrue revenue and bill based on events.

Event/Work Accrue revenue based on events, and bill as work occurs.

Work/Event Accrue revenue as work occurs, and bill based on events.

Work/Work Accrue revenue and bill as work occurs.

Defining Rate Schedules

You can define four types of rate schedules. The following table lists the four types of rate schedules and indicates how you can use each rate schedule type in Oracle Projects.

Note:

* If you select the option to use planning rates, then you can choose the cost and revenue rate schedules to use to generate amounts. If you do not select the option to use planning rates, then Oracle Projects automatically chooses the rate schedules that are used to calculate actual cost and revenue (bill) amounts.

* You must specify rate schedules for resource class. When Oracle Projects is unable to determine the actual or planning rates to apply in a calculation, Oracle Projects automatically applies rates from the default rate schedules you specify for resource class.

C: Consolidated Invoicing allows you to consolidate multiple project invoices into one single invoice.

You can configure transaction controls by the following:

(A) Expenditure Category

(C) Employee

(E) Expenditure Type

Non-Labor Resource

The following activities take place as part of the expenditures process flow for labor costs:

Run the process PRC: Distribute Labor Costs.   This process calculates the raw and burden cost components for labor cost expenditure items. It also uses AutoAccounting to determine the default debit account for each expenditure item.

Run the process PRC: Generate Cost Accounting Events.   This process uses AutoAccounting to determine the default credit account for each expenditure item. It also generates accounting events for distributed transactions. You can optionally select   Labor Cost   as the process category to limit the process to labor costs.

Run the process PRC: Create Accounting.   This process creates subledger journal entries for eligible accounting events. You can run the process in either draft or final mode. You can optionally select   Labor Cost   as the process category to limit the process to labor cost accounting events. Optionally, the process can post journal entries in Oracle General Ledger.

If you define your own detailed accounting rules in Oracle Subledger Accounting, then Oracle Subledger Accounting overwrites default accounts, or individual segments of accounts, that Oracle Projects derives using AutoAccounting.

Run the process PRC: Transfer Journal Entries to GL.   When you run the process PRC: Create Accounting, if you select No for the parameter Transfer to GL, then you run the process PRC: Transfer Journal Entries to GL to transfer the final subledger journal entries from Oracle Subledger Accounting to Oracle General Ledger. You can optionally select   Labor Cost   as the process category to limit the process to labor cost accounting events. Optionally, the process can post journal entries in Oracle General Ledger.

Run Journal Import in Oracle General Ledger.  (optional) This process brings the final accounting entries from Oracle Subledger Accounting into Oracle General Ledger.

You can automatically create and baseline an Approved Revenue Budget for a project by checking the Baseline Funding without Budget check box in the Project Funding Inquiry window.

Note: Budget/Fund/Bill at Project or Top Task Level

You can create a revenue budget, funding source allocation and project agreement, and perform billing at either the project or the top task level. After you have created an allocation line at either level, you cannot change to another level. For example, if you have created a funding allocation for a top task, you cannot create another funding allocation for the same project without entering a top task.